itBit Crypto Exchange Review: Best for Institutions, Not Retail Traders

Posted by Victoria McGovern

Comments (18)

10
Jan

itBit Crypto Exchange Review: Best for Institutions, Not Retail Traders

itBit isn’t your typical crypto exchange. You won’t find a mobile app, ACH deposits, or one-click buy buttons. If you’re looking for a simple way to buy $100 of Bitcoin on your phone, this isn’t the place. But if you’re managing institutional funds, trading hundreds of BTC per month, or need a platform that answers to U.S. regulators - itBit might be the only exchange you should consider.

What Makes itBit Different?

itBit launched in 2013 and became the first Bitcoin exchange in the world to receive federal regulation from the New York Department of Financial Services (DFS). Today, it operates under Paxos Trust Company, which holds a trust charter and is subject to strict audits, capital requirements, and daily reporting. That’s not something Coinbase or Binance can claim in the same way.

This regulation means itBit has to prove it holds every dollar and every Bitcoin it claims to. There are no hidden reserves. No risky lending practices. No opaque custody solutions. The DFS requires real-time monitoring of all transactions, and itBit uses blockchain analytics tools to flag suspicious activity. That’s why hedge funds, family offices, and crypto funds trust itBit with billions in assets.

Supported Cryptocurrencies and Trading Pairs

itBit doesn’t try to be everything to everyone. It supports just 12 cryptocurrencies, all paired with USD:

Bitcoin (BTC)
Ethereum (ETH)
Bitcoin Cash (BCH)
Litecoin (LTC)
AAVE
BUSD
LINK
MATIC
PAXG (Paxos Gold)
UNI
USDP (Pax Dollar)

No Solana. No Dogecoin. No Shiba Inu. No meme coins. If you’re here for speculative tokens, you’re in the wrong place. But if you want deep liquidity in BTC, ETH, and gold-backed stablecoins, itBit delivers. The platform only trades USD, so you can’t deposit EUR, CAD, or AUD directly. You’ll need to wire funds from a U.S. bank account.

Fees: Low for Makers, High for Takers

itBit’s fee structure is built for liquidity providers:

Taker fee: 0.35%
Maker fee: -0.03% (you get paid to add liquidity)

That negative maker fee means if you place a limit order that doesn’t immediately fill, you earn 0.03% of the trade value. That’s one of the best rebates in the industry. But if you’re market buying or selling - meaning you’re taking liquidity - you pay 0.35%. That’s higher than Binance’s 0.1% or Kraken’s 0.16% for takers.

The trade-off? itBit’s order book is deeper than most. For institutional traders moving 100+ BTC at once, that depth matters more than a 0.1% fee difference. You’re not paying less per trade - you’re paying less risk of slippage.

There are no withdrawal fees for crypto. That’s rare. Most exchanges charge $10-$25 to move Bitcoin. itBit lets you move it for free. USD withdrawals require a bank wire and cost $25 per transfer.

Trading Interface: Built for Pros, Not Beginners

The itBit interface looks like it was designed in 2018 - and that’s intentional. There’s no flashy dashboard. No trending coins section. No social feed. Just a clean order book, a price chart, a buy/sell panel, and your trade history.

It’s not user-friendly for someone who’s never traded before. But for someone who’s used to Bloomberg terminals or TradingView with advanced order types - it’s perfect. You get:

Limit, market, stop-limit orders
OCO (One-Cancels-the-Other) orders
Time-in-force options (IOC, FOK)
Real-time depth of book
API access for algorithmic trading

The API supports FIX, REST, and Market Data feeds. That’s why trading firms, market makers, and hedge funds use itBit. You can automate your strategies, integrate with risk management systems, and execute large orders without manual intervention.

Contrast between chaotic retail trading on phone and calm institutional trading with OTC vault.

No Mobile App? That’s the Point

You won’t find an itBit app on the App Store or Google Play. And that’s not an oversight - it’s a strategy.

Retail traders use apps for quick buys, impulse trades, and FOMO. itBit targets professionals who trade with discipline, not emotion. They don’t need push notifications. They need secure, stable, auditable access - and that’s only possible through a web interface.

If you’re used to checking your portfolio on your phone every hour, you’ll find this frustrating. But if you’re managing a fund and need to log in from a secure workstation, this is actually safer.

OTC Desk: Where Big Money Trades

One of itBit’s biggest advantages is its Over-The-Counter (OTC) trading desk. This isn’t a feature - it’s a service.

If you want to buy $10 million in Bitcoin without moving the market, you don’t place a limit order. You call itBit’s OTC desk. They find a counterparty, negotiate the price privately, and settle the trade off-chain. No slippage. No visible order book impact. No price spikes.

This is how institutional investors move massive amounts of crypto without causing panic or attracting attention. Competitors like Coinbase and Kraken offer OTC too, but itBit’s integration with its regulated exchange means the settlement is faster, more transparent, and fully auditable.

Security and Compliance: The Gold Standard

itBit holds 100% of customer assets in cold storage - except for the small amount needed for daily trading. That’s not marketing fluff. The DFS requires them to prove it every day.

All customer funds are segregated from Paxos’ corporate assets. There’s no rehypothecation. No lending to third parties. No crypto-backed loans. If the exchange were to collapse tomorrow, your Bitcoin and USD would still be there.

Identity verification is strict. You’ll need to upload a government-issued ID and a recent utility bill or bank statement. No faceless accounts. No anonymity. That’s the price of being federally regulated.

The platform is also compliant with FATF travel rule, meaning all transfers above $1,000 include sender and receiver info - a requirement for regulated entities.

Who Should Use itBit?

Use itBit if:

You’re an institutional investor, fund manager, or high-net-worth trader
You trade more than 2,500 BTC per month
You need regulatory assurance and audit trails
You’re comfortable with wire transfers and no mobile app
You prioritize security over convenience

Don’t use itBit if:

You want to buy crypto with a credit card
You need a mobile app or instant deposits
You trade small amounts under $10,000
You want access to hundreds of altcoins
You’re new to crypto and need hand-holding

Massive regulatory vault guarded by institutional traders, retail users watching from afar.

How it Compares to Other Exchanges

| Feature | itBit | Coinbase Pro | Kraken | Binance US | |--------|-------|--------------|--------|------------| | Regulation | NYDFS (federal) | NYDFS | NYDFS | FinCEN (federal) | | Maker Fee | -0.03% | -0.01% | -0.01% | -0.01% | | Taker Fee | 0.35% | 0.25% | 0.16% | 0.20% | | Crypto Withdrawal Fees | $0 | $0 | $0 | $0 | | USD Deposit Methods | Bank wire only | ACH, wire, card | ACH, wire, card | ACH, wire | | Mobile App | No | Yes | Yes | Yes | | OTC Desk | Yes | Yes | Yes | Yes | | Supported Coins | 12 | 150+ | 180+ | 100+ | | Best For | Institutional traders | Retail + pros | Retail + pros | Retail traders | itBit isn’t trying to beat Coinbase on coin selection. It’s trying to beat them on trust.

Real User Feedback

Institutional users on G2 give itBit high marks:

“Using the itBit Custody service is amazing. I love it.”
“The OTC desk saved us $120K in slippage on a $5M BTC purchase.”
“We switched from Kraken because we needed DFS-level compliance.”

But retail users? There’s almost no feedback. Cryptoradar shows zero reviews. That’s because retail traders rarely use itBit. It’s not designed for them.

Future Outlook

itBit’s future is tied to Paxos. The company is working on Bitcoin ETF custody solutions and has been mentioned as a potential partner for the first U.S.-approved Bitcoin ETF. That’s a big deal. If a Bitcoin ETF launches, Paxos could be the custodian behind it - and itBit would be the trading gateway.

The platform won’t add more coins. It won’t build a mobile app. It won’t start accepting credit cards. That’s not the plan. The plan is to become the most trusted, regulated gateway for institutional crypto capital.

Final Verdict

itBit isn’t the best crypto exchange for most people. But it’s the only one you should consider if you’re managing institutional money, trading large volumes, or need ironclad regulatory backing.

For everyone else - Coinbase, Kraken, or even Binance US are better choices. They’re easier, faster, and more feature-rich.

But if you’re serious about crypto at scale - if you need to know your assets are protected by federal regulators, not just a company’s word - then itBit isn’t just an option. It’s the standard.

Is itBit safe to use?

Yes, itBit is one of the safest crypto exchanges in the world. It’s federally regulated by the New York Department of Financial Services (DFS), which requires daily audits, full asset backing, and segregation of customer funds. All crypto is held in cold storage, and the platform uses blockchain monitoring tools to prevent fraud. Unlike many exchanges, itBit doesn’t lend out customer assets or use them for yield products.

Can I use itBit if I live outside the U.S.?

Yes, itBit serves users in over 100 countries, including Canada, the UK, Australia, Japan, and most of Europe and Latin America. However, you can only trade USD. That means you’ll need to transfer U.S. dollars via bank wire from your local bank. It doesn’t support EUR, GBP, or AUD deposits directly.

Does itBit have a mobile app?

No, itBit does not have a mobile app. The platform is web-only, designed for professional traders who use desktop terminals and secure workstations. This is intentional - it reduces security risks and aligns with institutional use cases. If you need to trade on the go, you’ll need to use a different exchange.

What are the trading fees on itBit?

itBit charges a 0.35% fee for takers (market orders) and a -0.03% fee for makers (limit orders that add liquidity). That means if you place a limit order that doesn’t immediately fill, you get paid 0.03% of the trade value. There are no withdrawal fees for crypto, but USD withdrawals via wire cost $25 per transfer.

Can I buy Bitcoin with a credit card on itBit?

No, itBit does not accept credit cards, debit cards, or instant payment methods like PayPal or Apple Pay. The only way to deposit USD is via bank wire transfer. This limits accessibility for retail users but enhances security and compliance for institutional clients.

What’s the minimum deposit on itBit?

There’s no official minimum deposit. You can deposit as little as $100. But the platform is designed for high-volume traders. If you’re trading under $10,000 per month, you’ll find better options with lower fees and easier deposits. The real value of itBit kicks in when you’re trading 100+ BTC or more than $5 million monthly.

Does itBit support altcoins?

Yes, but only 12 altcoins are supported - all paired with USD. These include Ethereum, Litecoin, Bitcoin Cash, AAVE, LINK, UNI, MATIC, and PAXG. There are no meme coins, no new tokens, and no staking. The focus is on established, liquid assets with institutional demand.

Jan 10, 2026
Victoria McGovern
18 Comments